Buying vs. Renting A Home

should you rent?

Here are the main reasons you should consider renting your place rather than making that big investment.

Small initial payment

At worst, you make a security deposit for the first and last months' rent. If you buy a home, you need to shell out a 10% to 20% down payment, which is equivalent to several years' rent.

Higher flexibility

This is a great benefit if you're young or you have to move quickly. When you rent, you can move whenever you want; you don't have to wait for your house to be sold. If you choose to relocate, the worst thing that will happen is that you'll lose your security deposit. That's nothing compared to the potential losses you could suffer if you have to sell your house quickly.

Less risk

You don't have to worry about natural disasters (earthquakes, floods, storms, and so on) that might inflict serious damage on your home. As a renter, you simply need insurance for your personal property, while the landlord repairs whatever needs fixing.

Also, if you have any doubts about your financial or job security, I would strongly recommend that you lean toward renting. Losing your job is bad enough; you don't want to lose your home in the process.

Less responsibility

You don't have to worry about painting the walls, keeping up with the city codes or being disturbed at 3 a.m. to fix a broken water pipe.

Fixed costs

You only have to pay your rent (which can go up 3% a year) and utilities. You don't have to worry about unexpected maintenance costs or increasing property taxes.

do the math

Before making a final decision, run the numbers. Houses usually appreciate and they provide significant tax advantages, but they also have an unfortunate tendency to leak, peel and blow their furnaces at inconvenient times. Make sure you can cover all the costs of owning a home before you take the plunge.